These are hard economic times we are in. And while phrases like “belt tightening measures, fiscal cliff and austerity measures” are being bandied around, signs that say “Closing Down Sale, Store Closing and Everything Must Go” are popping up all over. These are especially trying times for start-up, small and medium size enterprises. Their ability to survive and thrive is being sorely tested and many of them are failing. Many proprietors are closing their doors, waiting for better economic conditions. But is that the only option? NO! If anything, these challenging times call for well-developed plans and well-defined problem solving approaches.
The success of navigating your business through economic uncertainty lies in your ability to realign your business with current economic realities. And here I introduce the critical tool for success – STRATEGIC PLANNING! The strategic planning process will allow your organization to make better business decisions that minimize risks and seize opportunities. Even in tough economic times, there are opportunities to be taken advantage of.
Strategic Planning, simply put, is envisioning where you would like to be and determining the steps required to get there. And so, to ensure that your doors are still open a year from now, you need to articulate where your organization is going and the actions needed to make progress. This may seem overwhelming but if broken down, the process can be easy to tackle. Where do you start?
- ANALYZE: Where are you now? Analyzing involves taking an objective look at your position. It takes into account what is internal to your organization and also the external factors that impact it. Get a clear picture of your strengths, weakness, opportunities and challenges. SWOT and PESTLE are good tools for sound environmental analyses.
- ARTICULATE YOUR MISSION, VISION/PURPOSE STATEMENT: Where would you like to be? While problems, challenges and opportunities drive the need for strategic thinking, it is vision that drives the rest of the strategy process. It is this common focus that will provide direction for your business. The clearer and more compelling your vision the more powerful and imaginative your strategy will be.
- THE ACTION PLAN: How do you get there? You now understand your current situation and have determined your desired outcome. At this point strategies, goals and objectives become critical. Goals target desired business outcomes, while objectives are established to support those goals. Your strategies will institute the policies and tactics necessary to achieve your goals and objectives. During this step, you take a look at your resources, add some imagination, and create the shortest path that will lead to your vision. This may seem complex; however once clearly defined goals and objectives have been established, developing strategies for attaining them becomes less daunting. With the mission being articulated, the critical issues identified, and the goals and strategies agreed upon, your action plan should never remain in your head!! Formalize it into a proper business document. After all, the Action Plan is the catalyst that converts your strategic plan into results! PUT IT INTO ACTION!
- MONITOR & MEASURE: Are we there yet? Planning is future oriented, and as you cannot tell the future, it is imperative that you continue monitoring and measuring your business performance. This step will prevent you from locking into a particular strategy or tactic. The monitoring exercise incorporates the flexibility necessary for making adjustments that will keep you on the path towards achieving your vision. It ensures that you don’t repeat mistakes made. Measure your results. Are you achieving the desired results? If yes, document them to record best practices and learning points. If no, revisit the strategy!!
Strategic Planning will not only help you survive these turbulent times but will enable you to thrive as well. There are many benefits to be derived. Some include:
- Clear future direction
- Improved performance
- Doing more with less
- Recognition of company potential
- Better allocation of resources
- Greater profit margins
- Healthy bottom lines
You have much to gain from engaging in Strategic Planning. Losing your business is not an option.
